IT services company EDS is slashing two per cent of its global workforce, shifting more work offshore and developing new business process outsourcing services.
The redundancies, representing about 2,700 staff around the world, are likely to affect the company's 20,000 employees in the UK. A spokeswoman said that it was too soon to give details of numbers.
"It's at too early a stage to say what the implications for the UK will be. We expect more information to be available in the third quarter of this year," she said.
The strategy is designed to rejuvenate the company, said new chairman and chief executive Mike Jordan.
"We're targeting today's business-oriented chief information officer who typically has deep operational experience including profit and loss responsibility," he said.
"We're taking steps to position EDS as the services provider of choice for business leaders looking to extract the highest returns on IT investment."
Plans to move more work offshore, address contract performance issues, and dispose of non-core assets are expected to cost the company up to $475m this year.
As part of the new strategy EDS will move from multiple lines of business to a single marketing and sales activity, targeting customers with a single point of contact.
It will also forge technology alliances to offer services jointly with leading 'pure play' hardware, software, storage and networking providers.
However, Robert Morgan, chief executive at outsourcing consultancy Morgan Chambers, warned that the "utopian" plans to simplify the operating model were doomed to failure.
"For customers the indication is clear that EDS is going to attack infrastructure outsourcing in a much more aggressive way.
"There's some clear indication that there will be fiercely competitive infrastructure pricing in the next few months to take account of EDS' under-utilised infrastructure assets."
Morgan described the distant relationship with EDS' management consultancy arm AT Kearney as a missed opportunity.
"That's where IBM, Accenture and Cap Gemini Ernst & Young have the upper hand because it's integrated into their approach."
Anthony Miller, principal analyst at Ovum Holway, suggested that AT Kearney might not be too happy about the changes.
"Given that AT Kearney tends to lead its own consulting engagements, how comfortable they will be as the 'front end of the horse being led by the back end' is surely moot," he said.
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